I’d love to be able to tell you that the eligibility criteria for applying to the full KTP programme are completely transparent, easy to understand, and very clear – unfortunately that’s not exactly the case.
First criteria is type of organisation. You can apply for KTPs if you are “a UK registered business, not for profit organisation or eligible public sector organisation”.
Businesses
Any size of business can apply for KTP as long as you have a minimum of 2 full-time employees. The size of your business determines the funding rate for the project we can claim from Innovate UK – micro, small and medium sized businesses get 67% funding, large businesses get 50%. The remainder is funded directly by the business.
However the key information we will need to explain to the KTP assessors relates to ‘affordability’ and ‘knowledge transfer’.
We will need to demonstrate to the assessors that the business can afford to pay for both the direct costs of the KTP, and any other investments they will need to make to deliver the project outcomes. So, in reality you will need to show accounts that demonstrate revenue and profit. Because of this KTPs are not really suited to start-ups or companies with dormant accounts – we’ll need to share 3-years full accounts with the assessors at application stage.
To confuse things further, it is possible for pre-trading start-ups to successfully apply for funding if they can demonstrate large reserves and investment income…… confused yet?
Second information required relates to Knowledge Transfer – as the name of the programme suggests this isn’t ‘just’ about academics and the Associate doing a piece of work for a business and then wandering off into the distance. The business must be able to show how the knowledge generated in the project will be embedded into the business and exploited post-project. So for micro companies with 2 employees, the question will be asked how this is possible when everyone’s trying to do their day job as well as embed new learning.
NFPs & Charities
The criteria on employees and affordability described above still applies to NFPs and charities. Greta for these organisations is that the funding rate is even more generous – 75% supported by Innovate UK. To be eligible for this rate you need to be:
- a registered charity,
- a registered Community Interest Company,
- a registered Charitable Incorporated Organisation,
- a charitable company,
- an exempt or excepted charity, or
- a registered charitable industrial and provident society or charitable Cooperative.
Greatest challenge here will be to show how the project will bring commercial impact to the organisation. You might not be working in terms of profit, but you will need to demonstrate how the KTP will help you increase your income and surplus.
Public Sector
Public sector organisations have only recently been allowed back into the KTP arena (from March 2023) but they are limited to applying for Management KTPs with a funding rate of 50%.
So in summary, there are rules, but there are exceptions….. there are guidelines, but nothing is ruled out. Best thing to do is have that first conversation about KTPs with us and we can go through some due diligence, getting guidance if we need, before progressing too far down the KTP route.
Reach out – ktpinbox@city.ac.uk